Your friend's statement is based on the assumption that digital is not improving. It reminds me of a famous person (sorry, I don't remember who) who said that inventors should stop wasting their time trying to invent new things becuse there was nothing more in the world to be invented. That was around 1930! There are many who believe that current state of the art digital is not audibly inferior to analog in any way. The current $3000 CDP may not be that state of the art product though.
How can we settle for digital?
My friend, a recording engineer, once made a remark when I told him I had spent $3000 on a CD player. He said "How far can you polish a turd?" Those I know in the music business all agree that digital can only go so far. Vinyl is certainly making a comeback, but the advent of new digital formats seems to perpetuate new hope on the part of audiophiles. Do you buy it? Or are you sticking with your records? Or will you stand up for your $3000+ CDP? Is it just polishing a turd?